Businesses would get immediate tax deductions for new equipment and research, and an inflation-adjusted depreciation deduction for real estate.
This bill would let businesses immediately deduct the full cost of new equipment and research expenses from their taxes. It would also create an inflation-adjusted tax deduction for owners of rental homes and commercial buildings. These changes, reflected in the bill's title 'CREATE JOBS Act,' are intended to encourage business investment and growth.
Today, businesses can't always deduct 100% of new equipment costs immediately, and this tax break is set to phase down. Research and experimental costs must generally be spread out over 5 to 15 years. Depreciation for real estate doesn't adjust for inflation. If this bill becomes law, businesses would permanently get a 100% immediate tax deduction for qualified property, and they could immediately deduct all research costs. Owners of rental and commercial properties would also get an inflation-adjusted depreciation deduction.
HR 3967 · 119th Congress · June 12, 2025 · AI Summary by gemini-2.5-flash · 8/10
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